XPO's Earnings Beat Forecasts. It's Good News on the Economy -- Barrons.com

XPO的收益超过了预期。这对经济是个好消息--Barrons.com

2020/07/31 05:30  Dow Jones Newswires

DJ XPO's Earnings Beat Forecasts. It's Good News on the Economy -- Barrons.com


By Al Root

The shipping company XPO Logistics' earnings exceeded reduced expectations -- a common theme this profit-reporting season -- and although things were tough in April, May and June, the overall results look solid.

There are signs an industrial recovery is under way.

For the second quarter, XPO (ticker: XPO) reported a loss of 63 cents a share from $3.5 billion in sales. Wall Street was looking for a 76 cents-per-share loss from $3.4 billion in sales.

Beating earnings is always a good thing, but it is important to remember that the company reported earnings of $1.28 a share from $4.2 billion in sales a year ago. The pandemic has hit many companies hard, including XPO.

Many logistics providers have benefited during the pandemic from the explosion in e-commerce shipping. United Parcel Service (UPS), for instance, crushed second-quarter earnings expectations Thursday. It's shares rose 14.4% after the numbers came out.

XPO benefited from e-commerce trends as well. The company is a large provider of last-mile shipping for large equipment. XPO has been delivering a lot of Peloton Interactive (PTON) bikes lately. But much of XPO's business serves industrial customers. And many U.S. manufacturing facilities across many industries shut during the quarter to help slow the spread of coronavirus.

" Automotive went to zero," explained CEO Bradley Jacobs to Barron's. "But plants opened back up in May." Daily volumes in shipments of less than a truckload, or LTL -- a proxy for industrial activity -- dropped 22% year over year in April. Volumes in July, however, are down only single- digit percentage points.

The second quarter, as a result of recent improvement, should be the trough in economic activity. For the third quarter, XPO management told investors to expect $350 million in Ebitda, or earnings before interest, taxes, depreciation, and amortization. That compares with $172 million earned in the second quarter and $333 million in the first quarter of 2020.

Wall Street's financial models point to Ebitda of $323 million, so management's guidance looks good relative to expectations as well.

XPO stock reflects some relatively high expectations. Shares trade for about 23 times estimated 2021 earnings, a premium to the 20 times multiple for the market. What's more, shares are up about 8% year to date, better than comparable returns of the S&P 500 and Dow Jones Industrial Average.

Shares were up about 2.3%, to $89, in after-hours trading. For the stock to keep gaining from that level, things need to keep getting better.

"The European recovery is ahead of the U.S.," added Jacobs. XPO does a lot of business in Europe as well as the U.S. "Covid-19 started there earlier and [Europe] executed nationwide lock downs, but the North American rebound is the real deal."

The rebound is an external factor benefiting the company, but XPO is taking action internally as well. It named two new executives to the team when it released earnings. Eduardo Pelleissone has been chosen as chief transformation officer and Alex Santoro has been named executive vice president for operations. Both will be tasked with helping XPO take out $700 million to $1 billion in annual costs.

Cost reduction can benefit the company in the long run, regardless of what the economy does.

XPO management will host a conference call for analysts and investors at 8:30 a.m. Eastern Friday morning to discuss the results.

Write to Al Root at allen.root@dowjones.com

(END) Dow Jones Newswires

July 30, 2020 17:30 ET (21:30 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

DJ XPO的收益超过了预测。这对经济是个好消息--Barrons.com


按Al Root

航运公司XPO物流的收益超出了降低的预期-这是本财报季的一个共同主题-尽管4月、5月和6月的情况很艰难,但总体业绩看起来很稳健。

有迹象表明,工业正在复苏。

第二季度,XPO(股票代码:XPO)报告每股亏损63美分,销售额为35亿美元。华尔街预计销售额为34亿美元,每股亏损76美分。

盈利好总是一件好事,但重要的是要记住,该公司公布的每股收益为1.28美元,而一年前的销售额为42亿美元。这场大流行对许多公司造成了沉重打击,包括XPO。

在大流行期间,许多物流提供商从电子商务航运的爆炸性增长中受益。例如,联合包裹服务公司(UPS)周四公布的第二季度收益超出预期。数据公布后,该公司股价上涨14.4%。

XPO也受益于电子商务趋势。该公司是大型设备最后一英里运输的大型供应商。XPO最近一直在交付大量的Peloton Interactive(PTON)自行车。但XPO的大部分业务都是为工业客户服务的。许多行业的许多美国制造设施在本季度关闭,以帮助减缓冠状病毒的传播。

首席执行官布拉德利·雅各布斯(Bradley Jacobs)对巴伦百货(Barron‘s)解释说:“汽车市场跌至零“但工厂在5月份重新开张了。”4月份,低于一卡车(LTL)的日出货量同比下降了22%。LTL是工业活动的一个指标。然而,7月份的销量仅下降了个位数的百分比。

由于最近的改善,第二季度应该是经济活动的谷底。对于第三季度,XPO管理层告诉投资者预计EBITDA为3.5亿美元,即扣除利息、税项、折旧和摊销前的收益(EBITDA)。相比之下,第二季度和2020年第一季度的利润分别为1.72亿美元和3.33亿美元。

华尔街的财务模型显示EBITDA为3.23亿美元,因此管理层的指引看起来也符合预期。

XPO存量反映了一些相对较高的预期。股票的市盈率约为2021年预期收益的23倍,高于市场20倍的市盈率。此外,今年到目前为止,股价上涨了约8%,好于标准普尔500指数和道琼斯工业平均指数(Dow Jones Industrial Average)的可比回报率。

股价在盘后交易中上涨约2.3%,至89美元。要想让股价从这一水平持续上涨,情况需要不断好转。

雅各布斯补充说:“欧洲的复苏领先于美国。”XPO在欧洲和美国都有很多业务。“新冠肺炎在那里起步较早,[欧洲]在全国范围内执行了禁售,但北美的反弹才是真正的交易。“

反弹是使公司受益的外部因素,但XPO也在内部采取行动。该公司在发布收益时任命了两名新高管加入团队。爱德华多·佩莱松(Eduardo Pelleissone)已被选为首席转型官,亚历克斯·桑托罗(Alex Santoro)已被任命为负责运营的执行副总裁。这两家公司的任务都是帮助XPO每年减少7亿至10亿美元的成本。

无论经济形势如何,从长远来看,降低成本都能让公司受益。

XPO管理层将于上午8:30主持面向分析师和投资者的电话会议。东部周五上午讨论结果。

写信给Al Root,地址为allen.root@dowjones.com

(完)道琼斯通讯社

2020年7月30日美国东部时间17:30(格林尼治标准时间21:30)

版权所有(C)2020道琼斯公司。

免责声明:中文翻译由腾讯翻译君提供支持,富途对翻译信息的准确性或可靠性所造成的任何损失不承担任何责任。

Copyright©2019 FUTU. All rights reserved. FUTU does not provide any investment advice.